CDSL's board approved its first ever bonus issue of shares

3 Jul 2024 , 10:19 AM

The board of Central Depository Services Limited (CDSL) has proposed that bonus shares be issued to the company’s shareholders at a 1:1 ratio, the company stated. However, CDSL shares closed 2.10% lower at ₹2386.85 on Tuesday, compared to the previous closing of ₹2438 on the NSE. The stock is not listed on the BSE.

Total 49.41 lakh shares of the company changed hands, resulting in a turnover of ₹1197.26 Crore. The stock has a beta of 0.9, which indicates modest volatility over a year.

The depository has contemplated issuing bonus shares to shareholders for the first time.

The business will issue 10,45,00,000 equity shares with a face value of ₹10 apiece as bonus shares, for a total of ₹104.5 Crore, CDSL announced.

Bonus shares will be issued from the company’s free reserves, which include general reserves and retained earnings, subject to shareholder approval.

The bonus offer will have a share capital of ₹209 Crore.

The business stated that the bonus shares will be issued within two months of the board’s approval, on or before September 1, 2024.

The company’s board also approved raising the authorised share capital from ₹150 Crore divided into 15 Crore equity shares of ₹10 each to ₹300 Crore divided into 30 Crore equity shares of ₹10 apiece, according to the firm.

The business stated that the bonus shares will be issued within two months of the board’s approval, on or before September 1, 2024.

Central Depository Services (India) is SEBI-registered. The goal of CDSL was to provide all market participants with a simple, dependable, and secure repository at an affordable rate.

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